Giga-tronics (OTCMKTS:GIGA) and Frequency Electronics (NASDAQ:FEIM) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Giga-tronics and Frequency Electronics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Giga-tronics 0 0 0 0 N/A
Frequency Electronics 0 0 0 0 N/A

Profitability

This table compares Giga-tronics and Frequency Electronics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Giga-tronics -19.62% N/A -32.55%
Frequency Electronics -63.43% -20.58% -15.79%

Earnings and Valuation

This table compares Giga-tronics and Frequency Electronics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Giga-tronics $9.80 million 0.36 -$3.10 million N/A N/A
Frequency Electronics $39.41 million 2.45 -$23.77 million N/A N/A

Giga-tronics has higher earnings, but lower revenue than Frequency Electronics.

Institutional & Insider Ownership

0.0% of Giga-tronics shares are held by institutional investors. Comparatively, 42.1% of Frequency Electronics shares are held by institutional investors. 12.9% of Giga-tronics shares are held by insiders. Comparatively, 41.7% of Frequency Electronics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Giga-tronics has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Frequency Electronics has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.

Summary

Frequency Electronics beats Giga-tronics on 5 of the 9 factors compared between the two stocks.

About Giga-tronics

Giga-tronics Incorporated, together with its subsidiaries, designs, manufactures, and markets modular test products for electronic warfare in the Americas, Europe, Asia, and internationally. The company operates through two segments, Microsource and the Giga-tronics Division. The Microsource segment develops and manufactures a line of yttrium, iron, and garnet tuned oscillators, filters, and microwave synthesizers for use in operational applications, as well as in manufacturing a range of microwave instruments and devices. The Giga-tronics Division segment designs, manufactures, and markets a modular microwave test products primarily for testing RADAR and electronic warfare equipment of the defense electronics market. This segment serves prime defense contractors, the armed services, and research institutes. Giga-tronics Incorporated was founded in 1980 and is based in Dublin, California.

About Frequency Electronics

Frequency Electronics, Inc. designs, develops, manufactures, and sells precision time and frequency control products and components for microwave integrated circuit applications. It operates through two segments, FEI-NY and FEI-Zyfer. The FEI-NY segment offers precision time, frequency generation, and synchronization products and subsystems used in communication satellites, terrestrial cellular telephone, or other ground-based telecommunication stations; and other components and systems for the United States military. The FEI-Zyfer segment designs, develops, and manufactures products for precision time, and frequency generation and synchronization primarily incorporating global positioning system technologies into communications systems, computer networks, test equipment, and military command and control terminals for ground and satellite link applications. The company's products are used in commercial, government satellite payload systems, secure communications, command, control, communication, computer, intelligence, security and reconnaissance, counter measures, and electronic warfare applications for the United States government on land, sea, and air-borne platforms. It markets its products directly and through independent sales representative organizations located in the United States, Europe, and Asia. Frequency Electronics, Inc. was founded in 1961 and is headquartered in Mitchel Field, New York.

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